Ocean Yield ASA — Q2 2018 Earnings Presentation
20 slides from Ocean Yield ASA's earnings presentation, Jul 13, 2018
Slide 1: Q2 2018 Presentation
Q2 2018 PRESENTATION 13th July 2018
Slide 2: Q2 2018 Financial Highlights
Q2 2018 FINANCIAL HIGHLIGHTS • Declared Q2 2018 dividend of USD 0.1910 per share - USD 0.764 per share annualized - Dividend yield of 8.8 % p.a. - Declared cash dividends for 20 consecutive quarters • EBITDA was USD 84.3m vs. USD 77.8m in Q1 - EBITDA adjusted for finance leases was USD 95.1m vs. USD
Slide 3: Recent Events
RECENT EVENTS • Agreement to invest in four container vessels with long-term contracts to CMB NV • Delivery of two handysize dry bulk vessels during Q2 • Delivery of one Suezmax tanker and four container vessels in July • USD 330m in new bank loan agreements signed during Q2 • Issuance of a new 5 ye
Slide 4: Charter Backlog by Client End of Q2 2018
CHARTER BACKLOG BY CLIENT END OF Q2 2018 EBITDA1 BACKLOG OF USD 3.6 BILLION FLEET2 Tankers 22 18 % 8% Container vessels 10 3% 4% 4% 1% Oil-service 7 5% Avg. remaining charter 9% 5% tenor of 11.3 years Dry Bulk 7 5% 2% Car Carriers 6 15 % 3% 2% 10 % 6% Gas Carriers 2 FPSO 1 1) EBITDA backlog based on
Slide 5: Acquisition of Four 3,800 TEU Container Vessels with 12 Years Charter
ACQUISITION OF FOUR 3,800 TEU CONTAINER VESSELS WITH 12 YEARS CHARTER TRANSACTION DETAILS Net purchase price USD 120.0m in total net of sellers credit Number of vessels 4 Charter duration 12 years Charterer CMB Charter type Hell & high water bareboat Interest rate adjustments Floating Purchase optio
Slide 6: Update on the FPSO Dhirubhai-1
UPDATE ON THE FPSO DHIRUBHAI-1 • Production uptime of close to 100% in Q2 2018 • Remaining outstanding bank debt on vessel fully repaid in Q2 2018 • Status existing contract - On firm contract to Reliance Industries until 21 September 2018 - No agreement has so far been entered into with regards to
Slide 7: Quarterly EBITDA and Net Profit
QUARTERLY EBITDA AND NET PROFIT EBITDA PER QUARTER (USDM) 80.6 80.4 84.3 74.4 74.3 77.8 68.7 71.2 58.7 63.4 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 NET PROFIT PER QUARTER (USDM) 36.8 35.1 32.7 30.6 31.3 30.9 33.3 25.5 18.6 0.7 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2
Slide 8: Adjusted EBITDA and Net Profit
ADJUSTED EBITDA AND NET PROFIT EBITDA ADJUSTED FOR FINANCE LEASES (USDM) 89.3 89.3 95.1 82.8 83.1 86.8 75.6 79.1 63.6 69.3 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 ADJUSTED NET PROFIT (USDM) 36.9 36.3 37.9 31.6 33.4 33.4 33.5 34.4 33.9 29.0 Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2
Slide 9: Declared Cash Dividends for 20 Consecutive Quarters
DECLARED CASH DIVIDENDS FOR 20 CONSECUTIVE QUARTERS ADJUSTED EARNINGS PER SHARE (USD CENTS)¹ ADJUSTED EARNINGS YIELD 23.21 23.94 24.66 24.36 22.99 23.57 21.28 22.34 22.41 22.20 10.9%² p.a. Q1 2016 Q2 Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 DIVIDEND PER SHARE (USD CENTS) DIVIDEND YIELD 17.75 18.25 18.50 18
Slide 10: Income Statement
INCOME STATEMENT INCOME STATEMENT Q1 Q2 Amounts in USD million 2018 2018 Operating revenues 66.3 69.8 Finance lease revenue 16.8 19.2 Income from investments in associates 6.1 6.1 Total revenues and other income 89.2 95.1 Vessel operating expenses (6.4) (6.6) Wages and other personnel expenses (2.5)
Slide 11: Adjusted Net Profit
ADJUSTED NET PROFIT ADJUSTMENTS Q1 Q2 Amounts in USD million 2018 2018 Net profit 33.3 35.1 Loss from sale of AMSC bonds 0.0 0.4 Loss from repurchase of bond debt 0.0 0.2 Foreign exchange gains/losses 16.2 -12.9 • Bond and bank loans in NOK Change in fair value of financial instruments -18.1 13.6 Ch
Slide 12: Balance Sheet
BALANCE SHEET BALANCE SHEET Q1 Q2 Q1 Q2 Amounts in USD million 2018 2018 2018 2018 ASSETS EQUITY AND LIABILITIES Goodwill 9.8 9.8 Equity to holders of the parent 928.7 935.0 Vessels and equipment 1,290.4 1,258.5 Non-controlling interests 10.9 11.2 Investments in associates 194.2 197.1 Total equity 9
Slide 13: Financing Overview
FINANCING OVERVIEW USD 330M IN NEW BANK FACILITIES SIGNED DURING Q2 • Bank financing - Interlink Maritime USD 65m loan facility signed and drawn in Q2 - Louis Dreyfus USD 30m loan facility signed and drawn in July - NAT USD 117m loan facility signed and 1/3 drawn in July - 2 first VLCC USD 117.25m l
Slide 14: Remaining Capex vs. Financing
REMAINING CAPEX VS. FINANCING REMAINING CAPEX PER Q2 2018 VS. EXPECTED BANK FINANCING (USDM) 514 120 264 487 130 27 Suezmaxes Remaining Container Remaining Expected Remaining VLCCs vessels capex per Q2 undrawn bank cash payments financing COMMENTS • Remaining obligations relates to three suezmaxes,
Slide 15: Strong Liquidity Position
STRONG LIQUIDITY POSITION AVAILABLE LIQUIDITY PER Q2 2018 (USDM) 307 41 83 224 266 Cash Available Total available Repayment of Available cash drawing facilities cash OCY02 in Jul’18 adj. for bond repayment
Slide 16: Outlook
OUTLOOK • Ambition to continue to expand the portfolio of vessels - Continued favorable market conditions for new transactions - Access to capital markets, as illustrated by recent equity and bond issues - Access to competitive funding from banks • Intends to continue policy of paying attractive qua
Slide 17: Notes
NOTES July 18 7
Slide 18: Notes
NOTES July 18 18
Slide 19: Notes
NOTES July 18 19
Slide 20: Investor Relations
INVESTOR RELATIONS Marius Magelie, SVP Finance & IR +47 24 13 01 82 mm@oceanyield.no www.oceanyield.no/IR